Tokyo, Jan. 18.
While China's proposal that i port tariff dues shall be paid on a gold basis is considered as a contra vention of treaty (agreements, official circles intimate'that Japan, owing to the special circumstances of the silver slump, is likely to concede the point.
In the me that Mr. Shigemitso, the Japanese ited Consul-General in Shanghai and now the acting Charge d'Affairec, is carrying ott important converta-
From China's own point of view, it is pointed out, it would seem sential to make remittances frequently and" regularly against her loan payments. Any holding of silver for possibly higher rates would be a risky proceeding. It ix expected that ultimately there will be a Customs bank with a gold reserve, which will actually issue gold bonds of the value of the new unit; the importer would pay in these and the Customs would be able to pay direct to its foreign creditors, without the expense buying exchange locally.
it remains to be seen what effect fon trade there will be from the increased payments of duty in silver, which of course dealers will pass on to consumers. Until Jast autumn the Customs collection on the old 5 per cent, basis showed an increas compared with 1928; then through civil war and lack of confidence trade fell off and the annual colle: tion was between two and thi lakhs below that of 1928. If no: mal conditions and confidence and peace can be restored and preserved, the Chinese consumer will probably meet the additional charges easily enough, especially as in that ease exchange would probably go up and duties in slive come down again.
Text read from the printed page and cleaned; old type leaves the occasional error.